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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: cherrypitter who wrote (18145)	4/6/1998 1:34:00 AM
From: Broken_Clock	Respond to of 95453

Crude down 16 cents on ACCESS tonite. Gas up about 2 cents.Does that mean we go up tomorrow since we traded opposite oil last week?

To: cherrypitter who wrote (18145)	4/6/1998 2:15:00 AM
From: Douglas V. Fant	Respond to of 95453

Richard, I like BJS- but even though I work in the oil industry,I saw a figure on the number of wells needed to be drilled annually in Canada and it seemed high- 5500 annually. Does that seem high to anyone else? Maybe they mean 5500 wells either drilled or re-worked? or perhaps North American and not just Canada? (See following excerpt from article): ÿSome 5,500 gas wells in Western Canada must be drilled this year to fill the gas pipes, while the industry wants 6,500 wells drilled in 1999 and 2000. ÿ"It's going to be a significant challenge for the industry to meet 6,500 wells," said Jim Oosterban, vice-president of gas services, Ziff Energy Group. ÿWith a greater emphasis on natural gas, Molyneaux is baffled as to why more Canadians aren't investing in gas stocks. ÿ"Canadians are very pessimistic," he said. "They don't seem to understand the financial impact of what will be a record high gas price year in 1998, and clearly '99 is going to blow the doors off this thing." ÿAs for oil prices, the industry is in a wait-and-see pattern. The last hiccup was brought on by the Asian economic crisis, OPEC members over-producing, a warm winter in the northern hemisphere and oil from Iraq coming onstream. ÿThe big question is whether oil-producing countries will keep their pledge to cut production by 1.5-million barrels a day. And no one knows whether that will even be enough to stop prices from plummeting. ÿ"A big downward tug is that the magnitude of the cuts being contemplated isn't large enough to sop up the excess supply," said Judith Dwarkin of the Canadian Energy Research Institute. ÿDwarkin said the institute's analyses have concluded cuts of three-million barrels a day are needed to stabilize prices, while Croft believes two-million barrels would suffice. ÿOPEC continues to strive for a $20-a-barrel price, but the World Bank believes that won't happen this year. ÿ"The oil surplus will take some time to be absorbed by the market but if OPEC does not increase production, subsequently these prices will firm up and they should be higher next year," said Shane Streifel, a World Bank energy economist. Curious, Doug F.